The impact of foreign direct investment and international trade towards volatility of oil and gas industry

The impact of foreign direct investment and international trade towards volatility of oil and gas industry. Project Report. UiTM, Pasir Gudang, Johor. (Unpublished) (2018)



Abstract

The Malaysian government values foreign investment as a powerful force for the continued economic development of the country that is contributed by the oil and gas industry. The oil and gas industry is the top industry in Malaysia. Malaysia's growth in the oil and gas industry has been highly dependent on trade and the inflow of foreign direct investment (FDI). The current global crisis prompts Malaysia to review its policy on trade, something that is of importance since it is a small open economy. There is no doubt that Malaysia's growth in the price index of oil and gas industry in the last two decades has been driven by exports. The current crisis clearly draws attention to the fact that Malaysia depends on international trade, especially in terms of demand emanating from these countries. What is more, Malaysia's attractiveness as a location for FDI depends on the preferences of these developed economies from the price index of oil and gas industry. The effort of the strategy by the government can make the price index of oil and gas industry being more stable in the future. Numerous findings mentioned that the foreign direct investment and international trade contribute positive and significant relationship toward the price index of oil and gas industry. These relationship often been argued as it has been mentioned over time that foreign direct investment and international trade have contribute to the increasing of the price index of oil and gas industry. This research paper was carried out to observe the significant relationship or connection between foreign direct investment and international trade toward the volatility of price index of oil and gas industry. The main objectives of this paper are to identify the impact of foreign direct investment and international trade toward the volatility of price index of oil and gas industry. As the volatility of price index of oil and gas industry will be the dependent variable, the foreign direct investment and international trade are the independent variables. An ordinary least square method, regression model will be conducted to test the relation in a case of Malaysia data. It hopes that this research paper can contribute to the volatility of price index of oil and gas industry. The expected findings are there are positive relationship dependent and independent variables.

Item Type: Monograph (Project Report)
Keywords: Foreign Direct Investment, Real Import Volume Index, Real Export Volume Index, UiTM Cawangan Johor
Taxonomy: By Niche > Investments > Econometric Models
By Niche > Investments > Government Policy
Local Content Hub: Niche > Investment
Depositing User: Ahmad Akmal Mohd Idris
Date Deposited: 16 Jul 2024 06:31
Last Modified: 16 Jul 2024 06:31
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